Vividion’s Co-Founder Exits Fraud Lawsuit Tied to Sale to Bayer

Vividion Therapeutics Inc.'s founding chemist prevailed Thursday over fraud claims linked to the biotech company’s $2 billion sale to Bayer AG.

The Delaware Chancery Court dismissed a lawsuit alleging Benjamin Cravatt and his associates looted valuable intellectual property to launch a competing pharmaceutical startup, Belharra Therapeutics Inc.

The claims concerned intellectual property developed by Cravatt, owned by Scripps Research Institute, and licensed by Vividion. In the merger negotiations, Vividion released its rights to one of Cravatt’s molecular research patents, which was then licensed by Belharra.

“The renegotiations of the license agreement occurred after the parties fixed the merger consideration,” Chancellor ...